Concentration of Income in the Service Sharing Economy: Service Platform Cases in Mexico

Leonel Corona-Treviño  
(National University of Mexico, Ciudad Universitaria, Mexico)

Abstract: The objective of this paper is to propose an economic approach to analyse the concentration of income through platform firms, the marketplace linking users (customer/client) and providers within production through app developers and devices owners.   

It is important to identify the actors that put the assets into play by looking mainly at: 1) at transaction costs, 2) the externalities (network effects), and 3) the effects on the concentration-distribution of incomes.

A selection of 19-service platform firms in Mexico in transportation and crowdfunding are analysed considering their fees, market share and income. The study revealed that these variables allow them to earn large profits when an oligopoly is developed. Then the question of counterbalances through competition arises, but the main concern is about the need (or not) for regulation during this phase of SES production.

Key words: platform firms; concentration of income; uberization; sharing economy; Mexico

JEL codes: L2, L5, L8